Why should anyone still consider the Washington Post a credible news source when they continue to give platforms to completely idiotic (and painfully wrongheaded) individuals such as this person?
OUTSPOKEN: A Conversation With James K. Glassman
[…]
So, 10 years ago you predicted the Dow would reach 36,000. This week, the Dow fell to its lowest level since 1997, and 6000 seems more likely than 36,000. On behalf of investors and readers everywhere: What happened?
I think that people who read my columns would consider me a level-headed person who doesn’t get upset, either way, doesn’t have tremendous enthusiasms. But it’s true that in 1999 Kevin Hassett and I wrote “Dow 36,000,” which really made two points: The more important was that for investors who could put their money away for the long term, stocks were a much better investment than bonds. A lot of other people have said that, but we really made the case for stocks.
The second point was that based on our calculations, we believed that stocks would rise to roughly 36,000. We said in the book that it is impossible to predict how long it will take for the market to recognize that Dow 36,000 is perfectly reasonable, but then, of course, we did take a guess.
You said three to five years.
Obviously that hasn’t happened. I think the question investors are facing now is, “Is history a guide?” In “Dow 36,000” we looked at history in, I think, a completely reasonable way and said a) you ought to be in the stock market b) stocks are very much undervalued.
So, does history still prevail? My conclusion is that it does and that the basis of “Dow 36,000” is a good one and people should be in stocks for the long term. But I think reasonable people can differ about that today. We face a really scary time. […]
Do you still think it will hit 36,000?
I have no doubt about that. I think that is absolutely true. But I’m not going to tell you what date. […]
But you don’t feel the need to apologize to someone that read your book, went in and got creamed?
Absolutely not.
Whoever decided that this idiot deserved a lengthy interview in WaPo to continue to spout nonsense about his inane predictions about the economy should be fired. But since it was probably Fred Hiatt doing a favor for one of his buddies who faithfully served in the Bush administration as undersecretary of state for public diplomacy (with as much success, no doubt, as his prediction about the stock market), we know that’s not going to happen. Thank The Flying Spaghetti Monster President Obama refused to retain Glasssman in that office despite his expressed desire to continue to serve in an Obama administration.
Would you have wanted to stay in the job under Obama?
Yes.
Did it ever come up?
There were a lot of people advocating my staying, including Newsweek. But did it ever come up, like, did I ever have a conversation with anybody about it? No.
I can only hope Mr. Glassman sinks back into the obscurity he has earned and so richly deserves. Unfortunately, however, I suspect that he’ll be hosting his own show at CNBC within the next year. Or become a financial columnist at WaPo or Newsweek.
As Arthur would say, bet on it.
